Consolidated Funds and public accounts of India and of the States
Quick Summary (TL;DR)
Article 266 (Consolidated Funds and public accounts of India and of the States): Regulates taxation authority, public funds, revenue sharing, contracts, and property rights under Part XII.
In Simple Citizen Words
Article 266 ('Consolidated Funds and public accounts of India and of the States') in Part XII (Finance, Property, Contracts and Suits) regulates public money and property. It covers constitutional rules on valid taxation (Art 265), Consolidated and Contingency Funds (Arts 266–267), GST & tax devolution between Union and States (Arts 268–281), government borrowing and contracts (Arts 292–299), liability of the State to be sued by citizens (Art 300), and the constitutional Right to Property (Art 300A). Specifically: (1) Subject to the provisions of article 267 and to the provisions of this Chapter with respect to the assignment of the whole or part of the net proceeds of certain taxes and duties to States, all revenues received by the Government of...
Key Constitutional Provisions
Constitutional Mandate (Art. 266): Directly codifies the legal rule for 'Consolidated Funds and public accounts of India and of the States' under Part XII
Structured across 3 clause(s) with clear procedural conditions
Any administrative or legislative action violating Article 266 can be challenged before the High Court (Art. 226) or Supreme Court
Exceptions & Reasonable Restrictions
Under Article 265, no tax or fee can be levied or collected by executive order without an enacted law, and no money can be withdrawn from the Consolidated Fund without Parliamentary/Legislative appropriation.
Why This Matters in Daily Life
Protects citizens against arbitrary tax demands and illegal property seizure while enforcing strict fiscal discipline on governments.
Want deeper legal & historical context? Explore the official Bare Act or Supreme Court Precedents & CAD Debates: